What the letter means
IRM 4.10.2.8.1.2 lists the field examination initial contact letters:
| Letter | Use | Response time |
|---|---|---|
| Letter 2205 | “Letter 2205, Initial Contact Letter, does not list the issues being examined.” | 14 calendar days |
| Letter 2205-A | Lists the issues being examined | 14 calendar days |
| Letter 2205-D | Partnership returns; does not list issues | 14 calendar days |
Office examinations, run by tax compliance officers, use Letter 2202 (a firm appointment) or Letter 3572 and 3572-A (call-back letters) instead, with a focused information document request (IDR) enclosed. If the client's letter is a 2202 or 3572, this is an office audit at an IRS office, not a field audit.
The letter is mailed to the last known address. If a power of attorney is on file for the years under examination, IRM 4.10.2.8.1 says “the appropriate initial contact letter will be mailed to the taxpayer and a copy of the letter will be mailed to the representative with Letter 937.” Publication 1 and Notice 609 must be enclosed for the taxpayer, and the IRM adds “Pub 1 and Notice 609 should not be sent to the representative.” For a joint return, separate letters go to both spouses.
Why the client got it
Field examinations cover business returns and individual returns with business activity or complexity that call for an agent's visit and review of books and records. The plain Letter 2205 does not say which issues the agent plans to examine; the 2205-A does. If the client asks why, IRM 4.10.2.8.2 says the examiner “will provide the taxpayer with a response that is as accurate as possible, without revealing restricted use information.” See how IRS examinations work.
Deadlines and what happens if they pass
The letter allows 14 calendar days, including mailing time, to call. If there is no response, IRM 4.10.2.8.3 requires follow-up, and if a representative is on file the agent “must follow-up with the representative if the taxpayer fails to respond to the initial contact letter after 14 calendar days.” If calls fail, the agent reissues the letter or sends Letter 2295, which “advises the taxpayer their tax liability will be changed based on information on hand, or a summons may be issued,” by certified mail (registered mail abroad).
There is no statutory deadline in the letter itself, but the assessment statute is running on the years under audit, and a slow start often leads to a request to sign Form 872.
How to respond
- File a Form 2848 for every year and form under audit and send it to the agent as well as the CAF unit, so the agent can talk to you immediately. See Form 2848.
- Call the agent within 14 days to schedule. The IRM says the agent then confirms with Letter 3253 (to the taxpayer) or Letter 3254 (when the appointment is with the representative, with a copy to the taxpayer).
- Expect an IDR with the confirmation. IRM 4.10.2.8.1.2 says agents “must mail a detailed Form 4564, Information Document Request, with the confirmation letter listing all the information needed at the initial appointment.” See information document requests and the IDR response cover letter.
- Decide who attends. Under IRC 7521(c) an authorized representative may appear, and the IRS “may not require a taxpayer to accompany the representative in the absence of an administrative summons.” See taxpayer interviews and rights.
- Raise the place of examination early. IRC 7605(a) requires a time and place that is reasonable. Treas. Reg. 301.7605-1 and IRM 4.10.2 allow the representative's office within the taxpayer's local commuting area as an alternative in some cases, and a transfer request where the examination would unduly disrupt the business.
- Review the return and the client's records before the meeting so known issues can be raised and documented on your terms.
What the IRS does next
The agent holds the initial interview, confirms receipt of Publication 1 and explains the taxpayer's rights, then works the issues through IDRs, interviews and possibly third-party contacts. The examination ends with a no-change, an agreed report, or an unagreed report sent with a Letter 950 30-day letter. See the revenue agent's report.
Related notices
- Letter 566: correspondence (campus) audit initial contact.
- Letters 2202 and 3572: office audit initial contact.
- Letter 950: the field audit 30-day letter at the end.
Questions practitioners ask
Is a Letter 2205 a field audit or an office audit?
Field. Revenue agents use Letters 2205, 2205-A and 2205-D. Tax compliance officers in office examination use Letters 2202 and 3572.
Does the client have to attend the first meeting?
Not if a representative with a Form 2848 attends, absent a summons (IRC 7521(c)). The agent may still ask to interview the taxpayer.
The letter does not say what is being examined. Can we find out?
Ask the agent. The IRM directs examiners to answer as accurately as possible without revealing restricted information. A Letter 2205-A lists the issues.
What if we cannot call within 14 days?
Call or write to say when you can schedule. The agent must follow up with the representative before escalating to Letter 2295.
Can the audit be held at our office?
Often, if it is within the taxpayer's local commuting area and the agent agrees, under the place of examination rules in Treas. Reg. 301.7605-1.